Thestrategist.media – 27 April 2015 – According to Catherine Palmieri, the ability to predict the “next big thing” is “incredibly poor” among the consumers. In fact, their “reaction to new technology” mostly shows resistance. Consequently, many company executives are facing a challenge of synthesising between the driving-change as a competitive survival tactics and choosing the right move so as to be accepted by the consumers.
 
In order to hit the right balance, various companies assign experts to conduct a “market research” until they explore and exhaust all the possibilities and analyze strategic plans. In spite of all these ado, mostly the companies remain somewhat uncertain as to “which direction to pursue”.
 
Nevertheless, as per Palmieri, “The answer is often hiding in plain sight” as in most cases the company executives “know their customers better than” the latter realize. In fact, in some instances, the executives know their customers even better than the “customers know themselves”.  Consequently, records show that many “unnerving” products like ATM booth, Walkman, Amazon, and CitiMobile apps were launched in the market when people thought that they didn’t any need of all these things. Yet, these, very novel step, taking then, caused a fundamental impact in our lifestyle.
 
According to Palmieri, when Citibank installed ATM booths in 1977, “all over” the city of New York, “people were still wary of ATMs”, as the notion of “entering a code into a machine” to withdraw money was frightening to them. Moreover, when Walkman came out in 1979, retailers showed concerned as to sell “a portable music playback device that didn’t also record”; while Jeff Bezos’s launch of Amazon in 1995 came during a time when 97% Americans “had no online access” wherein the 42% “never heard of” the platform called “Infobahn”.
 
In fact, a research conducted by “Forrester and Ofcom” states that in 2007, during Citibank’s launch of “CitiMobile” 87% of mobile users were not accessing the net from their “mobile device” wherein almost 72% of them expressed their disinterest towards mobile net banking. Therefore Palmieri says that the key to know the reason behind these successful market launches among others, is:

 
Hence, Palmieri advices that “Instead of looking outside for guidance”, one needs to trust one’s insights about the customers which should go hand in hand “with a deep understanding” of the technology that can “deliver” the service intended. Moreover, executive figures should “foster an internal culture of experimentation”, whereby internal people should be given “the freedom” to experiment even though they might fail apparently.
 
At times, some individual trials may lead to error but when the individual imperatives are put together, “they provide a powerful approach to innovation”. It is the power of innovation that enables a company to improve on their “customer experience”. Furthermore, differentiating oneself from market competition can even lead to redefining the industry. Every innovative product that has “transformed human lives”, has ultimately “reduced the time needed to complete a task or the complexity of that task”.  In fact, Palmieri says:

References:
http://www.strategy-business.com/article/00320
 

Thestrategist.com – 14 April 2015 – According to Ken Favaro it is a well known fact to leading business figures that successful iconic companies are a result of strategic visions and its smart executions. Nevertheless, most fail to realise that in the process of executing strategies the former gets separated from the latter.
 
Usually, at the outset one sets the goals which are either “financially oriented” or strategic in nature. The former case includes increasing the income certain amount within a given range of years whereas the latter case refers to establishing a company as a leading figure in specific markets. In order to achieve the set target one then prioritises, invests wisely and reorganises the plan of action. After which comes the period of implementation wherein one reviews the progress and if required rewards the performance.
 
However, some companies succeed while others fail in meticulously following such programme, which could give a possible explanation of the difference between the leading companies and the ordinary ones. But, according to Ken Favaro’s experience there is “something much more significant” involved behind it.
 
Favaro gives an example of the Cardinal Health Company which figures in among the world’s leading pharmaceuticals distributors. The said company began its career as a “food distributor” but under the initiative of the founder, Mr. Bob Walter, the company changed its course of function as Walter wanted to earn better livings through high margin drug distribution rather than “low-margin food”. Nevertheless, the decision to shift over to more profit making business wasn’t enough by itself to change the destiny of the company; it was backed by Walter’s visionary idea.
 
During the early 1980’s, the market of medicine distribution “was well established” but “highly fragmented” within the local distributors. Consequently, the sourcing of drugs according to physician’s prescriptions proved to be a difficult task for the retailers.
 
At this juncture, Walter’s innovative idea of “prime vendor model” which will collect the drug supplies directly from the manufacturer “on behalf” of the retailers or any group of hospitals proved to be result of much needed “rational consolidation”. Nevertheless, any change is faced with opposition from the older system; similarly Walter had also overcome the resistance from the old market’s buyers and suppliers. With his steadfast and devoted focus, Walter turned a normal “food distribution” agency into a leading healthcare business model of $20 Billion’s worth, just within a span of twenty years.
 
There are other such examples of success stories like Starbuck, Burberry Group, and Puma who have changed their fate because of particular leading figures. Looking closely at all these success instances, one sees a common thread of target goals set by their respective leaders, followed by a course of action through a disciplinary monitored implementation that lead each of them to the winning market platform.
 
In fact, these were not the only common traits between them; the iconic leaders all had an innovative strategy forming the base of their goals which they were committed to make them happen. Favaro stresses on this level of commitment which allowed the executive figures to achieve their goals. In short Favaro writes, the success came through the path of “problem-idea-strategy-leadership”.
 
In Favaro’s words:

 
Having an answer to these two questions are important before moving onto the strategy part. Moreover, most importantly, the success story begins with a leader who has an innovative idea to solve “a big problem” instead of getting caught up in the systemic flaws. After all , as Favaro puts it:

 
So instead of getting disheartened by the negative aspects, a leader with an innovative problem solving idea can inspire the subordinate to put in their hundred percent to succeed in the journey of strategy to execution. 







References:
http://www.strategy-business.com/blog/Big-Ideas-Mark-the-Path-from-Strategy-to-Execution?gko=493b8
 

Greg Satell – 14 March 2015- writes that history of warfare prepares the foundations for tomorrow’s technological innovations. To a large extent, even in the time of peace, it is the development of warfare technology in many forms of weapons, including missiles, and bombs, affect the social life of a common man. Moreover, a large portion of the financial budget of a nation is used to invest on security system by various intelligence organizations like the C.I.A. In fact many of the life changing technologies like the Infobahn and “self driven cars” were first discovered by military agencies. Therefore, Max Boot, in his book, “War Made New”, helps us glimpse into the study of the war histories that led to game changing innovations.
 
Technology in various forms like steam engine acted like a catalyst in the first ever “industrial revolution”, the discovery of electricity along with the combustion engines caused the following one, whereas “word processors” and spreadsheets in Microsoft Office prepared the ground for today’s path breaking 3D printing tools. But what is most interesting that we often forget, when an innovation materializes itself, most often its utilitarian side remains a mystery even to its creator. Consequently, many a times a new invention fails to receive its due recognition for quite some period of time. In fact Boot has a particular example to illustrate the same through the scenario of a sea warfare that took place between Italy and Austria in the year of 1866. The said war was termed a draw in the gun fighting; however an Italian iron craft rammed into an enemy vessel and managed to sink it, as a result ramming into the enemy ship became a new naval strategy before they realised the usefulness of massive iron vessels over wooden ones that could provide a stronger firing line.
 
The usage of tanks like “the Blitzkrieg”, developed by the Germans during the Second World War, is a well known phenomenon. However, little do most people know that the warfare strategy of tank was, in fact, of a British origin. British were reluctant to trust an innovative method of “steel plated landships” conceived by Winston Churchill, which would easily break down during the First World War.
 
However, during the Second World War, Germany discovered the latent potentials of the early trials of tank warship and adapted it alongside the air force and radio supporting system which came as a breakthrough in the war strategies. Thus, it is a testimony to the fact that at times the novel inventions fail in the first trial but a second person, learning from the previous failures can take them to a new height altogether.
 
Innovation should also go hand in hand with experience that allows the best to be harvested from it, like the innovative development of Blitzkrieg and the experiential combination of radio support which proved a master stroke. Yet, there remains another step to climb in order to reap a holistic benefit of an innovation consisting of the touch of perfection and a mass scale production. It is this very strategy which during the WW II, contributed to the success of U.S. and today it continues to win the market for the Apple Company under Tim Cook’s guidance.


References:
http://www.forbes.com/sites/gregsatell/2015/03/14/4-innovation-lessons-from-the-history-of-warfare/